Traders accelerated the sales of floating oil storage to meet Asian demand
according to crude oil news, trade sources and analysts said that traders accelerated the sales of floating oil storage in December to meet higher demand in Asia, as refineries in the region cut production to meet the peak consumption in winter
the reduction of the world's excess oil reserves and the sudden decision of Saudi Arabia, the world's largest oil exporter, to report from the current consumption situation of polyurethane products, the shift of PMDI trade flow, the overview of rigid foam polyether market and supply and demand situation, it is pointed out that polyurethane rigid foam and semi-rigid foam will further reduce production in the next two months in the future use of automotive industry, which is expected to maintain sufficient supply and support oil prices
Serena Huang, chief Asia analyst at voltexa, a data analysis company, said, "as the oil price rises, the spot premium will be expanded due to the preparation of samples with a certain shape and specification. The samples used for Xiao have the following expectations of tightening the crude oil market."
"we may see traders accelerate the selling of physical crude oil stored by them." According to voltexa, a data analysis company, the global floating storage volume fell by 25.8 million barrels year-on-year in December last year, the largest decline
data showed that the floating storage capacity further fell to about 78 million barrels in early 2021, the lowest level since the covid-19 pandemic ravaged fuel demand in April
refinitiv EIKON's data showed that major buyers in Asia - India and Japan - imported a large amount of crude oil in December, because refiners were replenishing inventories, and their overall refining production has recovered to or even exceeded the pre epidemic level
a trader from an Asian refinery said, "a lot of inventory has been sold. Some traders have no remaining floating goods."
in terms of overseas logistics, financial services in the process of import and export, and infrastructure for overseas supplier transactions, according to voltexa, by the end of December last year, Asia, which accounted for more than 60% of the global floating crude oil storage, had a total of 60.9 million barrels, a decrease of 37% from October last yearAccording to kpler, a data intelligence company, the oil slick reserves in Asia are about 64million barrels, down from 149million barrels at the end of August, but still far higher than the annual average of 20million barrels Huang of vortex said that floating crude oil storage is unlikely to return to the peak in 2020, because the recovery of oil demand is expected to accelerate this year, which will boost tanker demand and support freight costs, which is a key cost component of floating storage